E-Commerce Dictionary
Cart Abandonment
Definition
When a potential customer starts a checkout process for an online order but drops out of the process before completing the purchase.
Deep Dive
Cart abandonment refers to the phenomenon where a potential customer initiates the online checkout process by adding items to their shopping cart but then exits the website or closes the tab before completing the purchase. This is a prevalent and costly issue for e-commerce businesses, representing lost revenue and a significant hurdle in optimizing conversion rates. Understanding the reasons behind cart abandonment is crucial for businesses to identify pain points in their customer journey and implement strategies to recover these potential sales.
Examples & Use Cases
- 1A customer adding multiple items to their shopping cart on an apparel website, proceeding to the shipping information page, but then closing their browser without finalizing the payment
- 2Someone adding a flight ticket to their cart on an airline's website and then deciding not to complete the booking due to high service fees
- 3A user leaving a subscription box service's website after entering their delivery address but before entering credit card details.
Related Terms
Checkout ProcessConversion Rate Optimization (CRO)Customer JourneyE-commerce Analytics